The oil and gas sector is expected to absorb 71.4 percent of this total, Brazilian ambassador to Turkey says
The potential for bilateral energy expansion between Turkey and Brazil is evident with projections of $440 million in investments in energy infrastructure by 2026, Brazil’s Ambassador to Turkey told Anadolu Agency (AA) on Wednesday.
Speaking exclusively to AA, Ambassador Eduardo Riccardo Gradilone Neto said trade relations between Brazil and Turkey have witnessed a rebound from $1.8 billion in 2016 to $2.2 billion in 2017.
“This result is attributed to the improved economic performance of both countries which, in 2018, should provide new opportunities for expanding trade and investment,” the Brazilian ambassador said.
Energy sector cooperation is one of the topics that the economic and trade promotion sectors of the Brazilian Embassy are following, he asserted, adding that this is also a topic on the agenda of the Turkish-Brazilian Economic Cooperation Commission that meets periodically to identify trade and cooperation opportunities between Turkey and Brazil.
He explained that the oil and gas sector is expected to absorb 71.4 percent of the $440 million total, 26.2 percent is anticipated for the generation and transmission of electricity, and the supply of biofuels is set to increase by 2.4 percent.
“The dynamism of the Turkish economy, which has grown at rates above the world average in recent years, and the Brazilian regulatory environment are parameters to guide the estimation of business expansion in the Brazilian electric power sector in the coming years,” he added.
– $1.18 billion revenue achieved in auctions
Auctions are the main form of energy contracts in Brazil that are carried out openly with the participation of Brazilian and foreign companies. The winners are defined by offering the lowest tariff with the aim of promoting efficiency in the contracting of energy, Neto explained.
“In the oil and gas sector, for example, the 14th auction round, held in September 2017, provided revenues of over 3.84 billion Brazilian reais (approx. $1.18 billion) in bonuses, according to the National Petroleum, Natural Gas and Biofuels Agency (ANP),” he said.
He noted that altogether 17 companies amassed areas for exploration, out of which seven are foreign companies.
In the bidding round, 37 blocks were acquired for exploration and production of oil and gas while three bidding rounds will be held in 2018 and 2019 each year, according to the ANP.
The largest signature bonus in the auction round was 2.24 billion Brazilian reais (approx. $690.8 million) offered by the Petrobras-ExxonMobil Brazil consortium.
– Share of renewables to reach 48% in 2026
Official data estimates that Brazil’s energy supply, which is necessary to advance the economy, will reach 351 million tons of oil equivalent (Mtoe) in 2026, based on a growth estimate of 2 percent per year, according to Neto.
“Of this amount, renewable sources can reach a share of 48 percent in 2026. In Brazil, the participation of renewable sources in meeting the growth of energy consumption in the coming years was prioritized,” he said.
Almost 45 percent of primary energy demand in Brazil is met by renewable energy, making its energy sector one of the least carbon-intensive in the world, according to the International Energy Agency (IEA). AA